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Saskatchewan Budget Infographic

Saskatchewan Budget Article

The 2018 budget for Saskatchewan was announced by Donna Harpauer, Finance Minister, giving details of an anticipated deficit of $365 million for 2018-19 but surpluses for subsequent years. Below are details of the key changes in relation to personal and corporate finances.

Personal

Cancelled Income Tax Reduction

The previously agreed income tax reduction of 0.5% which was due to come into force July 1, 2019 has been cancelled.

Non-eligible Dividend Tax Credit

Changes have been made in order to offset federal income tax changes and are now 3.333% for 2018 and 3.362% for 2019.

Infirm Dependent Tax Credit & Caregiver Tax Credit

Saskatchewan has agreed to retain the current provincial Infirm Dependent and Caregiver tax credits, rather than follow the federal consolidation of the tax credits.

Eliminated Energy Star Appliances PST Exemption

The PST exemption for Energy Star-certified appliances will be eliminated from April 11, 2018.

Eliminated Used Vehicle PST Exemption

Also effective April 11, 2018, the PST exemption for used light vehicles will be eliminated for private sales with a purchase price of above $5,000, though gifts given between certain family members will continue to be exempt.

Cannabis Tax

The budget confirms that Saskatchewan has agreed to adhere to a structured tax framework with the Canadian government for a period of two years after the legalization of cannabis for recreational purposes. Specifically, excise duties will be imposed on the flowering material that is used to create cannabis at $0.25 per gram federal excise duty and $0.75 per gram provincial excise duty, both to be collected by the federal government.

Corporate

Saskatchewan Technology Start-up Incentive

A new tax credit of 45% is offered for new investments made in small businesses that meet qualifying criteria. This is a pilot program, only available to firms in the early stages of technology start-ups that meet certain criteria, such as having less than 50 employees and being headquartered and carrying out key operations in Saskatchewan.

Investors are able to claim up to $140,000 in tax benefits on an annual basis, plus carry unused investment room forward to four years later.

Saskatchewan Value-added Agriculture Incentive

A non-refundable tax credit of 15% on qualifying new capital expenditure features in the budget, available to companies who meet the eligibility criteria of being involved in value-added agricultural activities of upgrading raw or primary agricultural products. Capital expenditure of a minimum of $10 million must be made and must be agreed by the Saskatchewan ministry of Trade and Export Development.

To learn how these changes will affect you, please don’t hesitate to contact us.